According to data from the cryptocurrency analyst firm Skew, the premium of GBTC stocks has remained negative for the 17th consecutive day.
Material: Skew
In general, the decline in the premium is thought to suggest that some institutional investors are either cashing out the gains from rising bitcoin prices or brokering the premium.
GBTC is a trust product, and its shares are traded on the OTC secondary market. However, according to the regulations of the US Securities and Exchange Commission (SEC), institutional investors who invest in GBTC stocks at net asset value can only sell stocks after six months or more.
Accordingly, it is possible that the recent decline in the premium is due to the sale of stocks by some investors who purchased GBTC stock six months ago.
Peter Schiff, a leading bitcoin critic and gold investment expert, recently tweeted that the return of the GBTC premium to negative is likely to mean that financial institutions are losing interest in bitcoin.
Meanwhile, while GBTC’s premium remained negative, Grayscale purchased an additional $1.8 billion worth of bitcoin, increasing its total assets under management to $44.5 billion as of the day.
Also earlier this week, Grayscale launched five cryptocurrency trust products based on Chainlink (LINK), Filecoin (FIL), Livepeer (LPT), Basic Attention Token (BAT), and Decentraland (MANA) coins. Newly released.